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Complementarity and Substitution in Industrial R&D Activity

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  • O. G. Golichenko
  • S. A. Samovoleva

Abstract

The paper proposes macro analysis of business preferences for using internal and external sources of research and development. These preferences are investigated for the business sector as a whole. The higher education and government sectors are taken as the most important external sources for business research and development (R&D). The actions of the business sector are considered in terms of choice of the composition of investment in its research and acquisition of external knowledge. This choice may have dynamic effects of substitution or complementarity. The paper introduces four primary factors that influence the behavior of business sector. That is the main subject of the study. These factors are: a stage of country’s development and economic situation, business conditions, efficacy and dimensions of impact of public policies on R&D. The work carries out cross-country comparisons of complementarity and substitution effects in the use of business R&D sources as well as the shifts in business preferences. The comparison has been made within two groups of countries for 2000-2010.

Suggested Citation

  • O. G. Golichenko & S. A. Samovoleva, 0. "Complementarity and Substitution in Industrial R&D Activity," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 3.
    • Handle: RePEc:ack:journl:y::id:81
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